Landlords accused over deposit millions

Hundreds of thousands of private tenants are owed millions of pounds by landlords who refuse to pay back their deposits, research shows today.

Just under a quarter of people who rented in the private sector and paid a deposit to their landlord in the past five years say some or all of it was withheld at the end of their tenancy. Just one in seven people of those people told MORI the amount of money taken was justified.

There are some 2.2 million private tenants in Britain, 70 per cent of whom have paid deposits averaging £510. Citizens Advice and housing charity Shelter say landlords and agents hold around £800million. But there is no regulation over how much is charged, how it is held or how it is returned.

The groups back an amendment to be debated in Parliament today calling for the new Housing Bill to set up a statutory national tenancy deposit scheme to protect people's money and resolve disputes.